The market paradox: why are gold and stocks setting records together?

in PussFi 🐈7 days ago


Hello friends of the PussFi community, I hope you're all doing well. Today I want to share with you a situation that has me quite thoughtful, and I think many who follow the economy have also been wondering about it. The point is this: we are experiencing a rather strange time in the financial markets, because both stocks and gold are rising in price at the same time, and that, historically, is not the most common thing to happen.


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Gold chart on my TradingView Account

Let me explain a little, in case anyone isn't familiar with the topic. Normally, when stocks rise, it's because there's confidence, people invest, take risks, and move away from assets considered "safe," like gold. Gold has always had the reputation of being a safe haven in times of crisis, economic uncertainty, high inflation, or even war. So, when the world is in turmoil, it's logical for gold to rise, but stocks to fall, because people get scared and prefer to keep their money in something that won't lose value.

However, now we're seeing the opposite: gold at all-time highs and, at the same time, giant companies like Apple, Microsoft, and Tesla continue to report impressive profits and their stocks are skyrocketing. And of course, if we look at the S&P 500 or the Nasdaq, they're also posting quite high numbers. So the question I ask myself is: what's going on? Because, really, it doesn't make much logical sense for the market to behave this way.


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SP500 chart on my Trading View Account

ASome say it's because there is so much money in circulation—due to stimulus, loans, and rising government debt—that ultimately, this capital seeks to invest in several places at once, both in risky assets and safe havens. Others believe we are in a kind of silent bubble that could burst at any moment, and that what we are seeing is just the calm before the storm.

I, honestly, am not a fortune teller, nor do I pretend to be, but history has taught us one thing: when markets behave so "irrationally," sooner or later an adjustment comes. And the most worrying thing is that while ordinary people continue to suffer from the cost of living, from insufficient wages, from debt, there is a financial bubble that seems to inflate more and more without anyone wanting to burst it.

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SourceGif edited in Canva

The strange thing about all this is that many are celebrating the stock market gains and also the price of gold, but in the end, both rising at the same time can be a sign of shattered confidence. In other words, investors don't know where to go and end up investing in everything. And we already know how that ends: at some point, someone gets scared, starts selling, and the domino effect drags everyone down.

Will a new economic collapse like the one in 2008 be coming? I don't know, but it seems to me that we are in a delicate phase, where it is important to be vigilant and not believe the story that everything is under control. In the end, the economy is like a pendulum; sooner or later it returns to its equilibrium, and often that equilibrium is achieved with a strong blow.

What do you think? Could we be facing another major crisis disguised as a boom?


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Twitter | Instagram | Discord | Youtube | Telegram: @josevas217

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